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Illinois NEU Allocations from ARPA

American Rescue Plan Funds (ARPA) for Non-entitlement Units (NEU) of Local Government (Portal now open)

The American Rescue Plan Act of 2021 (ARPA) appropriates $19.53 billion to States for distribution to tens of thousands of non-entitlement units of local government (NEUs). ARPA directs the U.S. Department of the Treasury (Treasury) to make payments to each State for distribution to NEUs within the State. Illinois' NEU allocation is $742 million. In Illinois, eligible NEUs include more than 1,250 cities, towns and villages that each serve a population under 50,000.

These funds provide a critical source of relief for local governments, including smaller governments which have not received direct financial assistance from the federal government since the onset of the COVID-19 pandemic.

Authorized representatives from each NEU can log into the portal, request their allotment and download all the required Treasury documentation. Allocations to communities are made on a per-capita basis in two payments. After completing the allocation request on the portal local governments will receive their allocation in two payments: the first will be made within 30 days of portal completion, the second to be made approximately one year later.

Funds can be used to cover revenue losses and the costs of responding to the COVID-19 public health emergency or to its negative economic impacts on households, small businesses, impacted industries, essential workers, and the communities hardest-hit by the crisis. These funds can also be used to invest in building, maintaining, or upgrading water, sewer, and broadband infrastructure.

Note: Per Treasury guidance, NEUs that did not claim their allotments within 60 days after the State began accepting and processing requests for funding, forfeited their allotment. As of November 19, 2021, the State distributed any remaining funds to NEUs who elected to receive funds. No further re-allocation of funds will be made during the program timeline.

Latest News

October 2022 – For guidance requirements relating to Single Audits as a result of receiving ARPA SLFRF, review the 2022 Compliance Supplement starting on page 10.

July 2022 – U.S. Treasury will allow recipients to elect the standard allowance for revenue replacement through the April 2023 reporting period. This includes making updates to previously reported elections.

February 2022 – U.S Treasury has released guidance for the reporting portal. NEU and NON-UGLG Distribution Templates User Guide and the Treasury Login User Guide.

January 2022 – U.S. Treasury issued the ARPA SLFRF Final Rule on January 6, 2022.  See U.S. Treasury Resources page for updated links to both the Final Rule and the Final Rule Overview guidance.

What is an Illinois NEU?

An NEU is a Non-entitlement unit of local government, as defined in section 603(g)(5) of the Social Security Act, as added by section 9901 of the American Rescue Plan Act of 2021 and are local governments typically serving populations of less than 50,000.

Which local governments are eligible?

Cities, villages, and towns with populations of less than 50,000 are eligible for an ARPA NEU Allocation.  See the full list of eligible municipalities and allotments.  Illinois has determined that its minor civil divisions (MCDs) are not eligible for allocations.

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